Do you have flood insurance? I was told that water from the ground is only covered under flood insurance. Water from a broken pipe would be covered under regular insurance.

Unless you have flood insurance, and most people don't unless it's required because you live in a flood zone, it most likely will not be covered by insurance.

Do you know what, exactly, is causing the drainage problem? Sometimes it is just a matter of building up the ground around the foundation so it slants away from the house. Or if you have a lot of free-standing water that's causing the problem, you can install a French drain.

I had drainage problems in my backyard (driveway was flooding) and put in a French drain, which allows the water to drain underground, away from the house.

It really depends... depending on how the water is getting into the house and what type of coverage you have on your policy. Call your insurance company and file a claim. They will get an adjuster out to determine if it is covered.